Mass. Market: Business-friendly bills still alive on Beacon Hill

The film industry wasn't the only corner of the business world to get treated like a movie star by the Legislature this year.

Jon Chesto

The film industry wasn't the only corner of the business world to get treated like a movie star by the Legislature this year.

By the time lawmakers wrapped up formal meetings for the year on Tuesday, they had considered bills aimed at other favored industries, such as biotechnology, renewable energy and biofuels. But there was no wide-ranging omnibus business bill - like the two economic stimulus packages featured in previous years - this time around.

Many of the business-oriented bills remained stalled, awaiting the compromises necessary to get through the House and Senate. These will resurface for debate next year, when legislators meet formally through the end of July to close out the two-year session.

Here's a closer look at what did and did not get done on Beacon Hill at the halfway mark.

Tax credits for the film industry: After losing much of ``The Departed'' to New York City, lawmakers in 2005 created some of the most generous tax incentives in the nation for the film industry. But the field kept getting more competitive as other states got in on the act. So lawmakers in July improved the original law, partly by getting rid of the state's $7 million per-movie cap on the tax credits.

Now, movies are coming to the state that aren't even set here. Steve Martin and the cast of a ``Pink Panther'' sequel landed in Boston, even though the story takes place in Paris. And scenes from ``The Box,'' a film starring Cameron Diaz and set in Virginia, are being shot in Boston and Milton.

Identity theft protections: In previous years, identity theft bills seemed like a low priority on Beacon Hill, even as other states raced to put new protections in place. But data breaches at prominent local retailers, such as TJX and Stop & Shop, spurred quick action among state lawmakers this time around.

The final bill, which was sent to Gov. Deval Patrick in July, gives consumers the ability to freeze access to their credit for a fee and requires companies to notify them if their private data has been compromised.

Opening up tidelands development: Developing waterfront properties in Massachusetts has never been easy, as state regulators keep a close eye on reserving public access to the ocean. But the state's highest court ruled this year that similar protections should be put in place for other properties considered to be tidelands, even if they are not adjacent to the water.

Fearing that the ruling could grind tidelands developments to a halt, the commercial real estate industry lobbied hard for a new law that would continue the old way of doing business. Patrick signed the law, aimed at freeing up those landlocked properties, earlier this month.

Auto insurance competition: For the first time in 30 years, the state allowed auto insurers to set their own rates, instead of abiding by a standard structure approved by the state insurance commissioner. Patrick's commissioner, Nonnie Burnes, pushed the reform through. However, some urban lawmakers are advocating for a bill aimed at protecting consumers by reversing some of Burnes' changes. It's too early to know whether Burnes' ``managed competition'' plan will draw some new nationwide insurers here.

There are still plenty of items on the Legislature's calendar that await action in 2008. Perhaps the most well-publicized of those is Patrick's plan to legalize resort casinos. His bill would allow up to three resort-style casinos in different corners of Massachusetts. The bill is languishing amid opposition by House Speaker Sal DiMasi and Rep. Dan Bosley, one of DiMasi's lieutenants.

Then there's Patrick's 10-year, billion-dollar plan to boost the life science industries. Lawmakers are weighing concerns that the legislation could give away too much money to one sector of the economy at the expense of other businesses that also need help.

DiMasi ran out of time before he could get one of his top priorities through the Senate, a bill that would increase the use of renewable energy, despite a last-minute push. The bill would provide tax credits for motorists who buy hybrids and businesses that use solar-powered heating systems, and would also require 20 percent of the state's power to come from renewable sources by 2020.

A bill to spur demand for biofuels has the support of Patrick and legislative leaders. But it has raised concerns among potential opponents that include heating oil companies and environmentalists. It's likely that the best parts of the biofuels bill will be merged with DiMasi's energy bill next year.

So which lucky industries will benefit from Beacon Hill's benevolence next year? I wouldn't be surprised if biotech and biofuels continue to bask in the spotlight. But I wouldn't bet on the casino bill's success as long as DiMasi stands in its way.

Jon Chesto may be reached at jchesto@ledger.com.

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